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Moldova’s AML/CFT Regulations: A Comprehensive Review

In a bid to strengthen its anti-money laundering (AML) and combating the financing of terrorism (CFT) regime, Moldova has implemented various regulations and measures to prevent financial crimes. The country’s Mutual Evaluation Report for 2019 provides an overview of its progress in implementing the Financial Action Task Force (FATF) Recommendations.

Risk Assessment and Risk-Based Approach

Moldova is largely compliant with FATF Recommendation R.1, which requires countries to assess risks and apply a risk-based approach to AML/CFT measures. The country has developed a comprehensive risk assessment framework that identifies high-risk sectors and entities.

National Cooperation and Coordination

The country’s national cooperation and coordination efforts are also deemed largely compliant with FATF Recommendation R.2. Moldova has established effective mechanisms for sharing information between law enforcement agencies, financial institutions, and other relevant bodies.

Money Laundering Offence

Moldova is compliant with FATF Recommendation R.3, which requires countries to criminalize money laundering. The country’s criminal code defines money laundering as the concealment or disguise of illegally obtained funds.

Confiscation and Provisional Measures

The country is partially compliant with FATF Recommendation R.4, which requires countries to provide for confiscation and provisional measures in relation to AML/CFT investigations.

Terrorist Financing Offence

Moldova is largely compliant with FATF Recommendation R.5, which requires countries to criminalize terrorist financing. The country’s criminal code defines terrorist financing as the provision of funds or other resources to individuals or entities engaged in terrorist activities.

Targeted Financial Sanctions

The country is partially compliant with FATF Recommendations R.6 and R.7, which require countries to implement targeted financial sanctions against designated persons and entities.

Higher-Risk Countries

Moldova is partially compliant with FATF Recommendation R.19, which requires countries to identify higher-risk countries and jurisdictions and take measures to mitigate the risks associated with transactions involving these countries.

Reporting of Suspicious Transactions

Moldova is compliant with FATF Recommendation R.20, which requires countries to establish a system for reporting suspicious transactions. The country’s financial institutions are required to report suspicious transactions to the relevant authorities.

Tipping-Off and Confidentiality

The country is compliant with FATF Recommendation R.21, which requires countries to prohibit tipping-off and ensure confidentiality in AML/CFT investigations.

Financial Institutions’ AML/CFT Obligations

Moldova is largely compliant with FATF Recommendations R.24 and R.25, which require countries to establish AML/CFT obligations for financial institutions and ensure that these institutions are subject to effective supervision and monitoring.

AML/CFT Regime

The country’s AML/CFT regime is partially compliant with FATF Recommendation R.26, which requires countries to establish a comprehensive AML/CFT regime that covers all aspects of the financial system.

Anti-Money Laundering Authority

Moldova has established an anti-money laundering authority (AMLA) to oversee and enforce AML/CFT requirements. The AMLA is responsible for implementing and enforcing AML/CFT regulations, as well as providing training and guidance to financial institutions.

Supervision of Financial Institutions

The country’s financial institutions are subject to supervision by the National Bank of Moldova and other relevant authorities. These supervisory bodies are responsible for monitoring compliance with AML/CFT requirements and taking enforcement actions against institutions that fail to comply.

Conclusion

While Moldova has made significant progress in implementing its AML/CFT regime, there are still gaps and deficiencies in various areas. The country’s financial sector remains vulnerable to money laundering and terrorist financing risks, and it is essential that the authorities continue to strengthen their efforts to prevent these crimes.